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Mygawd, The Market Is Closer to Oversold than Overbought 11/16/20

This is a syndicated repost courtesy of Stool Pigeons Wire at To view original, click here. Reposted with permission.

At 6 AM ET, nothing has budged since my original 2 AM post below.

2 AM ET  How could that be? I’m putting the finishing touches on a report that explains it, to be posted in Liquidity Trader in two parts. The first will be up early this morning, and the second a bit later this afternoon.

Meanwhile, back at the daily funhouse, unless something changes radically over the next 6 hours or so, New York will again open on a massive gap. The crazy has become normal. All of the moves take place over night, and then during the day New York spends the day shimmying, shaking and quaking.

Meanwhile the hourly oscillators are on the sell side following sideways churning since last night’s pop open in Asia. On the other hand there’s a 5 day cycle projection of 3630-3640 still operative. One old trendline extension suggests possible resistance at 3640. So for now, I’d look for that as a target. Additional resistance targets are at 3650 and 3660.

Trend support is suggested at 3605. Bears need to break that, and also 3600 and 3585 to have a chance at a significant reversal.

Click to enlarge..

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Not Just Liquidity, Why I Can’t Be Bearish Technically

Cyclically, there’s no reason to get bearish here. Cycles of up to 6 months duration remain in gear to the upside. A 4 week cycle high is due now, but it won’t matter if the 6-8 week cycle is dominant. Here are the price targets and theoretical timing of these expected moves.

Technical Trader subscribers, click here to download the report.

Not a subscriber? Try Lee Adler’s Technical Trader risk free for 90 days!  


Composite Liquidity Indicator (CLI) – Shows Stocks As Oversold

Are You Kidding Me?

Can this be right? Did the stock market become oversold in mid October versus Composite Liquidity. This chart said that it did. And even after this huge 2 week rally, it’s still much closer to oversold than overbought. The S&P 500 is still near the bottom of the liquidity band.

It’s very similar to a look it had in July 2011. That preceded 4 years of a relentless, virtually unbroken bullish string.

What should cause us to expect change?

The facts, figures, and outlook are reserved for subscribers. Click here to download the report.

This is Part 1 of a 2 part report. Part 2 will be published later today.

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Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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